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World Maritime University Dissertations Dissertations
2006
Container development strategy of Tianjin port
Container development strategy of Tianjin port
Weina Min
WMU
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Recommended Citation Recommended Citation
Min, Weina, "Container development strategy of Tianjin port" (2006). World Maritime University Dissertations. 939.
https://commons.wmu.se/all_dissertations/939
non-WORLD MARITIME UNIVERSITY
Shanghai, China
CONTAINER DEVELOPMENT STRATEGY OF
TIANJIN PORT
By
MIN WEINA
China
A research paper submitted to the World Maritime University in partial Fulfillment of the requirements for the award of
MASTER OF SCIENCE
(INTERNATIONAL TRANSPORT AND LOGISTICS)
2006
DECLARATION
I certify that all the material in this research paper that is not my own work has been
identified, and that no material is included for which a degree has previously been
conferred on me.
The contents of this research paper reflect my own personal views, and are not
necessarily endorsed by the University.
(Signature):
(Date):
Supervised by
Professor Zong Beihua
Shanghai Maritime University
Assessor
Professor Robert McCalla
Saint Mary’s University
Co-Assessor
Professor Liu Wei
ACKNOWLEDGEMENT
I finished this dissertation with the help of my supervisor Professor Zong Beihua. At
the phase of dissertation researching and writing, Professor Zong gave me lots of
instructions and help. Her earnest and precise teaching attitude, wide and
quintessential knowledge, virtuous characters touch me deeply. With her help, I
finished my dissertation with less crooked road. So at the completing of my
dissertation, I will express my sincere thankfulness and grand respect to my honorific
ABSTRACT
Title of Research paper: Container Development Strategy of Tianjin Port
Degree: MSc
With the development of economic globalization, Port, which is regarded as the pivot
of sea and land, takes increasingly important role in regional economy. In my country,
3 big port clusters shape in costal region. They are Bohai rim’s economy circle port
cluster, Yangtze River delta economy circle port cluster and Pearl River delta
economy circle port cluster. Of these three big port clusters, Shanghai port’s pivot
status in Yangtze River delta is unshakeable by its own strength and its strong
hinterland. In Pearl River delta, Xianggang port’s cock status can’t be suppressed by
Shenzhen port and Guangzhou port in short period by right of its own strength. But
in Bohai rim’s port cluster, Qingdao port, Tianjin port and Dalian port’s power is
pretty much the same. The competition within these 3 ports is very serious. At the
same time, the competition with oversea port is also very serious and a large
proportion of cargoes in the north of china are transferred at oversea. If we let this
“transfer at oversea” situation going on, all of the north port of china will become
feeder port of Pusan port. This outcome is not hoped by china. So establishing china
north international shipping center, rationalizing branch line and main line,
complementing advantage and disadvantage and taking part in competing for
becoming north container pivot port is of great importance. Under this situation, as
the biggest all-around port, what should Tianjin port do? Just aiming at this, I carry
through analyzing and container throughput prediction. Then at the end paper, I will
give Tianjin port’s container development strategy.
TABLE OF CONTENTS
DECLARATION...ii
ACKNOWLEDGEMENT...iii
ABSTRACT ...iv
TABLE OF CONTENTS...v
LIST OF TABLES...ix
LIST OF FIGURES...xi
LIST OF ABBREVIATIONS...xi
Chapter 1 Introduction...1
1.1 The background and significance of topic choosing...1
1.2 Dissertation’s contents and methodology...2
1.3 The outline of dissertation...2
1.4 Literature review...4
1.4.1 International container pivot’s forming and development...4
1.4.1.1 International container pivot’s definition and formation requirement...4
1.4.1.2 The function and development of international container pivot port...6
1.4.2 Port economy and china ports’ sufferings...7
1.4.3 Competitive cooperation theory...8
Chapter 2 Tianjin port’s survey and current condition...10
2.1 Summarization of Tianjin port’s current condition...10
2.1.1 Tianjin port’s natural condition...10
2.1.2 Current container development condition of Tianjin port...11
2.2 Competition situation of Tianjin port and circumjacent ports...12
2.2.1 Major competitors aboard...13
2.2.2.1 Pusan port...13
2.2.1.2 Guangyang port...14
2.2.1.3 Kobe port...16
2.2.2 Main domestic competitors...18
T
2.2.2.2 Dalian portT...20
T
Chapter 3 Necessity of china’s establishing northern container pivot portT...23
T
3.1 The press for establishing china’s northern container pivot portT...23
T
3.1.1 Demand of Bohai rim’s economic developmentT...23
T
3.1.2 Construction uniqueness of china’s northern container pivot portT...24
T
3.2 The necessity of establishing china’s northern container pivot portT...25
T
3.2.1 Need for improving china’s international economy competitiveness and northern port’s international competitive statusT...26
T
3.2.2 Strategic need for realizing national developmentT...26
T
3.2.3 Need for promoting north region’s social and economic development and opening to the worldT...28
T
3.2.4 Requirement for china port industry’s configurationT...30
T
Chapter 4 Qualification analysis of establishing Tianjin port as an international container pivot portT...31
T
4.1 Strengths analysis of Tianjin port around northeast Asia and Bohai rimT...31
T
4.1.1 Tianjin port is an all-around international trade port, major container port and energy port in north chinaT...31
T
4.1.2 Tianjin port has been paid great attention by government at all timesT... 31
T
4.1.3 Tianjin port owns favorable port conditionT...33
T
4.1.4 Construction of infrastructure developed quickly in Tianjin portT...33
T
4.2 The weakness analysis of Tianjin port around northeast Asia and Bohai rimT
...34
T
4.2.1 Circumjacent port’s large scale and specialization tendency is increasingly apparentT...34
T
4.2.2 Transportation network needs further constructionT...35
T
4.2.3 The berth needs further constructionT...35
T
4.2.4 Unsoundness of port logistic operation management modeT...37
T
4.2.5 Unsoundness of information managementT...37
T
4.2.6: It is faster to world major route compared with Dalian port and Qingdao portT
...38
T
Chapter 5 Forecasting of Tianjin port’s container throughputT...39
T
5.1 Methodology of forecasting Tianjin port’s throughputT...39
T
5.1.1 MethodologyT...39
T
5.1.2 Flow chart of forecastingT...42
T
5.2 Motivation of Tianjin port container transportation’s developmentT...43
T
5.2.1 Developing tend of china port’s container productionT...43
T
source for Container ports in chinaT...43
...70
LIST OF TABLES
Table 2-1 Tianjin port’s container throughput and growth rate from 2001 to 2005 11
Table 2-2 Current condition of Pusan port...14
Table 2-3 Guangyang port’s employing plan...15
Table 2-4 The competition characteristics among Tianjin port, Pusan port and Kobe
port 17
Tabel 2-5 The container throughput of Qingdao port, Tianjin port and Dalian port
from 2001 to 2005...19
Table 2-6 The comparison among Tianjin port, Qingdao port and Dalian port. 21
Table 3-1 The complementation between regions & countries in northeast Asia in
natural resource and economic resource aspect 28
Table 4-1 World container ship fleet (until April 1st, 2005)...36
Table 4-2 Evolution of the ship’s size...37
Table 4-3 Distance between Tianjin port, Qingdao port, Dalian port and major ports
in Europe and America...38
Table 5-1 Economic comparison of big urban agglomeration 48
Table 5-2 History data of Beijin, Tianjin, Hebei, Shanxi region’s GDP and Import
& Export foreign trade volume...54
Table 5-3 Regression equation for Beijing, Tianjin, Hebei, Shanxi’s GDP...55
Table 5-4 Forecast of 4 region’s GDP and Import & Export foreign trade’s overall
volume from 2006 to 2010...56
Table 5-5 Suitable-for-container rate of Beijing, Tianjin, Shanxi and Hebei...56
Table 5-6 Container production Prediction of Tianjin port’s direct economic
hinterland from the year of 2007 to 2010...58
production from 2007 to 2010...59
Table 5-8 Prediction on Tianjin port’s container throughput from 2007 to 2010...60
LIST OF FIGURES
Figure 2-1 The compare of throughput (TEU)...14
Figure 2-2 The plan of Guangyang port...15
Figure 5-1 The flow of container port throughput‘s forecasting...43
LIST OF ABBREVIATIONS
EDI Electronic Data Interchange
CO Corporation
TEU Twenty-Feet Equivalent Units
DWT Dead Weight Tonnage
DCT Dalian Container Terminal
GDP Gross Domestic Product
CPC Communist Party of China
US United States
WTO World Trade Organization
LOA Length Overall All
EU European Union
R&D Research and Development
IT Information Technology
NY New York
NJ New Jersey
LB Long Beach
Chapter 1 Introduction
1.1 The background and significance of topic choosing
With the development of economic globalization, Port, which is regarded as the pivot
of sea and land, takes increasingly important role in regional economy. In my
country, 3 big port clusters shape in costal region. They are Bohai rim’s economy
circle port cluster with the center of Tianjin port, Dalian port and Qingdao port;
Yangtze River delta economy circle port cluster with the center of Shanghai port and
establishing china north international shipping center, rationalizing branch line and
main line, complementing advantage and disadvantage and taking part in competing
for becoming north container pivot port is of great importance. China’s economy
development needs establishing a pivot port in the north of china to compete with
Pusan port and Kobe port and scramble back the losing transit cargoes. This will not
only largely increase china’s port scale but also will play very important role in
costal cities’ development.
1.2 Dissertation’s contents and methodology
Under nowadays’ serious competition, what should Tianjin port—the biggest
all-around port in the north of china do? Just aiming at this, my paper will focus on
analyzing Tianjin port’s competition situation, strategy and forecasting Tianjin port’s
container throughput. At the end of my dissertation, I hope to find a good strategy for
Tianjin port’s development.
The text of my dissertation contains 6 chapters. Chapter one is a simple description
of Tianjin port’s current condition. Chapter two mainly describes the necessity of
establishing china’s northern container pivot port. Chapter three is qualification
analysis of establishing Tianjin port as an international container pivot port. In this
chapter, I mainly analysis the strength and weakness of Tianjin port in northeast Asia
and Bohai rim. In chapter four I carry through forecasting about Tianjin port’s
container throughput. In the last chapter, I will find the strategy suitable for Tianjin
port.
Tianjin port container throughput’s forecast
1.4 Literature review
1.4.1 International container pivot’s forming and development
1.4.1.1 International container pivot’s definition and formation requirement
ⅰThe definition of international container pivot port
International container pivot port refers to the port that has dense sea route,
deepwater channel, frequent collecting and distributing network and related
industries served for container shipping.
The above definition implies that international pivot port is composed of 2 parts. One
is infrastructure and the other is software environment service system. The
infrastructure refers to berths, channel, collecting and distributing network, modern
transportation information system and some other relevant support facilities that
complied with current and the future need. The software environment service system
refers to the service departments served for international container transportation like
customers, products testing, sanitation testing, safety inspection, ship inspection,
plant & animal inspection and some other departments on behalf of government law
execution departments. It also includes service institution like shipping agency,
freight forwarder, shipping market exchange and admiralty court and so on.
ⅱ The contribution factor of international container pivot port’s formation
There is a historic process of the formation of international container pivot port. All
of the nowadays’ well-known international container pivot port are world economy
center port cities. They all firstly developed beginning with economy and trade, then
became the international pivot port and then developed into international container
pivot port. So we can conclude that worldly and regional economy and trade’s
development stimulate the formation of international pivot port. From the end of 18th
century to the beginning of the 19th century, industry revolution made England firstly
continent and London became the international pivot port. From the end of 19th
century to the beginning of the 20th century, in the process of world economy growth
center transferred to America from west Europe, Rotterdam and New York became
the new international pivot port one after another. Since 1960, countries in northeast
Asia and Japan’s economy booming made world economy growth center transferred
to Asia-Pacific region. Therefore, Hong Kong, Singapore became the international
pivot port. From this, we can see that the formation of international pivot port has
close relationship with regional economy’s development and foreign trade’s
development. The reason can be explained by a simple reason. The development of
economy leads to trade development, but trade need transportation. Therefore,
international shipping ports formed. In consequence, we can conclude that on one
side, international pivot port is the demand for international economy and trade’s
high-speed development, one the other side, international pivot port’s development is
the important basic requirement for world or regional economy and trade’s
development.
ⅲ Requirements of international container pivot port
The first requirement is natural condition. The international pivot port should have
deep-water channel and deep-water berths complied with the current and future need
and developed collecting and distributing network. Besides, port should exploit as
many sea routes as possible to explore the radiating area for international shipping.
The second requirement is that the port should have huge hinterland to support
sufficient cargoes. For instance, New York’s direct hinterland is New York and New
Jersey. The indirect hinterland is northeast, middle and western industry regions as
well as North America and South America. Wide economy hinterland makes New
York the places full of big exporters from America, Canada, Argentina, South
America, Australia and Africa and because of that New York has become the biggest
international trade market and economy center in the world. So huge hinterland is the
The third requirement is having favorable location condition. The best example is
Singapore. Singapore is located in the middle of sea route of Europe and Asia-Pacific
region. Favorable location condition makes it the best choice for international pivot
port of transshipment.
The fourth requirement is developed and healthy shipping market, dense shipping
route and huge volume of shipment. For example, Hong Kong international pivot
port has business transaction with more than 100 countries and 460 ports in the world.
More than 300 shipping companies set up headquarters, subsidiary companies or
agency at Hong Kong.
1.4.1.2 The function and development of international container pivot port
There experienced 3 development processes from international pivot port to
international container pivot port. The first generation of international pivot port is
transshipment ports. Its function is simplex, only cargoes transportation and
collection and distribution. The second generation of international pivot is the port
between international pivot pot and international container pivot port. It was in a
transformation phase. The transformation completed after the 2nd world war. At that
time, the main function of port also includes value added service asides from
efficient transportation and collection and distribution. Since 1980s, international
pivot port has completed the transformation to international container pivot port. The
main function of ports has developed to resource allocation from logistic center. The
ports have become the new generation container pivot ports that integrate cargoes,
capital, information and technology circulation.
There are 4 main functions of international pivot port. The first one is transportation
function. The transportation function of international pivot port is demonstrated at
that International container pivot port mainly provides global and cheaply door to
for international radiating economic hinterland. Transportation function is the most
basic function of international container pivot port. The second one is logistic service
function. Ports are becoming logistic service center. Its function extends to inland
such as whole selling, distributing, warehousing, and free trade zone, providing
compositive logistic service for ships, cars, trains and warehouse. Ports have become
the service center of multimodal transportation and the transshipment point of high
value-added logistic. The third one is business function. The development of
international container pivot port not only laid foundation for international trade and
at the same time it promotes the development of international trade. So international
shipping center and international trade center is always interactive supplement. The
fourth one is information managing function and information releasing function.
Modern pivot port is based on EDI system and then developed into regional
information center gradually. Therefore, the development of international container
pivot port not only laid foundation for international trade and at the same time it is a
very important stimulating factor for international trade.
1.4.2 Port economy and china ports’ sufferings
Wangwei said from china’s port— Worry behind blossom, although Chinese port
appears booming quickly, the actual competition ability is not strong enough
compared with international hub port. He pointed in international shipping
transfer-cargoes take a high proportion. But china is lack of this kind of transfer-cargoes. Too many
ports in the same region, resources configured unreasonably and over competition
are the main reasons, which weaken the competition power of china’s port.1
Cao zhongxi points that china’s ports exist a lot of weakness while flourishing,
especially in managing and operating in integration and optimization among ports.
China’s ports have the tendency of pursuing number but not profit. For example, in
recent years, shipping condition is becoming better, Freight rate increase largely.
Ports also make full use of this chance increasing port charges. But china’s port
seems impervious. From this, we can see that china’s port take more attention on
number than profit. Mr Cao also regards that the main pressure on china’s port is not
from nearby ports like Korean but from itself. Every port in china wants to become
hub port. It is a good thing. But if the relationship betweens port is not harmony, it
will be very dangerous.2
Ports economy is regional economy which combines shipping, ports, shipping related
industries, business, trade, and touring. As a carrier of information changing between
within region and outside region, port economy has become the main power for
promoting regional economy. But what we should pay attention to is that
globalization also brings in a lot of difficulties and challenges to ports. Ships are
becoming bigger and professional. International shipping Co’s alliance is becoming
more popular.3 So ports within the same region should also in search of cooperation
but not competing seriously, fighting for each other which leads to internecine and
unable to compete with ports outside region or abroad.4
1.4.3 Competitive cooperation theory
Competitive Cooperation first brought forward by Professor Nalebuff in Yale and
Professor Brandenburger in Harvard. It is a concept using describing phenomenon
including both competition and cooperation. The ultimate purpose of competition is
win-win. Win-win strategy demands us get rid of the traditional philosophy of “not
win is loss”. Win-win strategy calls for cooperation in order for more benefit. That’s
not to say that competitive cooperation deny competition. It just aims avoiding
over-competition and virulent over-competition and keeps moderate and rational over-competition.
The members of alliance can get more benefits that can’t be got by Win-Lose
strategy. Cooperation will not only avoid ports’ over competition within the same
2
Cao zhongxi, 2005, pp. 7-9 3
port cluster, but also can increase port cluster’s competitive power compared with
other port cluster hence increasing ports’ stimulating role in regional economy.5
Chapter 2 Tianjin port’s survey and current condition
2.1 Summarization of Tianjin port’s current condition
2.1.1 Natural condition of Tianjin port
Tianjin port is located in Tanggu that is about 170 km away from Beijing and 50 km
away from Tianjin. Tianjin port is not only a very important international port in the
north of china and sea gate of Beijing which is the capital of china but also the port
in the middle of Bohai rim nearest to north china and north-west areas. Tianjin port’s
hinterland mainly includes two municipalities of Beijing and Tianjin and most
provinces and municipalities of north china, north-west areas. It also includes 8
provinces--Heibei, Shanxi, Inner Mongolia, Shanxi, Gansu, Qinghai, Xinjiang,
Ningxia and some areas of Henan and Shandong provinces. It owns abundant
resources like salt, coal, oil, mine and so on. At present, Tianjin port’s overall
property has reached 12.4 billion Yuan, and has already have 140 berths including 8
appropriated berths which can berth fifth generation and 6th generation container
ships.
There are a lot of railways and highways in Tianjin port’s hinterland. So it belongs to
the transportation-developed region in china. The railway in the port areas connects
every area’s hinterland through Tianjin port’s rail pivot. Among Tianjin’s rail traffic
network, there has already existed shanghai railway line,
Beijing-Shanhaiguan railway line, Jinji railway line and Jingqin railway line. In the roadway
aspect, the road transportation line composed by Haerbin line,
developed collecting and distribution network provides favourable condition to
cargoes’ circulation and Tianjin port’s further development. At the same time, it is
also beneficial to the construction of Tianjin port’s container logistic center.
2.1.2 Current container development condition of Tianjin port
In the year of 2005, Tianjin port completed cargoes throughput 240 million tons and
container throughput 4.8 million TEU. They respectively increased by 1.5% and
1.8%. Table 2-1 shows Tianjin port’s container throughput and growth rate in recent
years. At present, Tianjin port owns 101 productive berths and among them, there are
55 deep-water berths and 15 container berths. The design container throughout
capability is 3.55 million TEU. By improving efficiency and exploiting potentials,
now the real container throughput capability reached 5 million TEU in Tianjin port.
Table 2-1 Tianjin port’s container throughput and growth rate from 2001 to 2005
Tabulation unit: 10 thousands TEU
Year 2001 2002 2003 2004 2005
Throughput 201 240 301 381 480
Growth Rate 1.194 1.19403 1.254167 1.265781 1.259843
Source: Arrange on my own according to statistic materials in custom
According to constructing china’s north container pivot port, Tianjing port pays great
attention on the construction of waterway engineering in recent years. In July of
2003, the first phase of Tianjin port’s 150.000 tons waterway engineering that
invested 180 million Yuan completed timely. Tianjin port stepped forward to
world-class deep-water port. This project widen the 100.000 tons waterway from previous
210 meters to after 260 meter while the design water depth and waterway length still
keep -14.8 meters and 28.8 km. After the widening of waterway, Tianjin port’s
capability in navigation and level of bi-directional transportation ships will improve
of goods and 6th generation container loaded ships can go in and out of the ports.
The 4th generation container ships, 70.000 tons bulk carrier and 20.000 crude ships
can navigate bi-directional. 100.000 tons crude ships and 10.000 tons ships can
navigate bi-directional. In June of 2005, the second phrase of Tianjin port’s 150.000
tons waterway engineering which invested 370 million Yuan completed on time.
After the completion of second phase of engineering, the depth of waterway has
reached -17.2 meters and the width has reached 310 meters. Now, 150.000 tons ships
can go in and out of the ports freely, the 5th and 6th generation container ships can
go in and out of the ships bi-directional, 200.000 tons ships can go in and out of port
taking the tide. The completion of the second phrase of Tianjin port’s 150.000 tons
waterway engineering signify that Tianjin port has gotten ride of disadvantage of
fairway depth and Tianjin port now is able to satisfy the deep water and large scale
trend of container ships.
At the time of constructing the waterway engineering, some other important
construction projects are under construction too. In the following 3 to 5 years,
Tianjin port will invest 40 billion Yuan to extend Tianjin port area to 100 sq km from
present’s 30 sq km and will construct about 30 projects. The 2 biggest projects in
Tianjin port’s history— the 300.000 DWT crude oil terminal and north port’s
container terminal 3rd section project— have came into operation in Dongjiang port.
Singapore port authority and Tianjin port group exploit the north port container
terminal 3rd section project corporately. These two parties invest 6.6 billion Yuan
jointly to construct and operate 6 deep-water berths. This 6 100.000 DWT container
berths’ design annual throughput will reach 400 TEU. It is predicted that to the year
of 2010, Tianjin port’s container throughput will increase to 10 million TEU.
According to the plan, the first 3 berths will put into operation in 2008.
.
With the economic focus’s transfer to Asia-pacific region, there has already formed
container transportation centred port chain comprising Pusan to the north and
Singapore to the south which has formed a ring of encirclement to costal ports of
china. At present, china’s northern ports’ major international container pivot port
competitors are Pusan and Guangyang in Korean and Kobe port in Japan.
2.2.1 Major competitors aboard
2.2.2.1 Pusan port
Pusan port is located in the southeast of Korean and is the most important pivot port
in Korean. Pushan port is initiated in 1876. Now it has already transported 80% of
container cargoes of Korean and become the transit base from Asia continent to
North America. Pusan port has been the 3rd largest container port one time, but now
it has been over passed by Shanghai port and Shenzhen port and dropped to the 5th
largest container port. In the year of 2005, Pusan port has completed container
throughput 11.84 million TEU. Pusan port is a very big competitor of Tianjin port. It
container throughput and port condition is still much bigger and better than Tianjin
port and either port in the north of china though its world status dropped recently.
Figure 2-1 shows the comparison of container throughput in 2005 between world’s
major container port including Pusan port and china’s northern port. Table 2-2 shows
Figure 2-1 The compare of throughput (TEU)
Source: Arrange on my own according to statistic data of customers
Table 2-2 Current condition of Pusan port.
Category Total Pusan new port
Number of berth 25 3
Berthing capability DWT Number
50.000 20
20.000 1
10.000 1
5.000 3
DWT Number
50.000 3
Handling capability
(10 thousands TEU/ year)
616 90
Draft 11-17meters 16
Source: http://chinese.busan.go.kr/business/04_01.htm
2.2.1.2 Guangyang port
Guangyang port is the 2nd largest container port in Korean. In order to enlarge
transportation market share in north-east Asia, aside from enlarging Pusan port,
Koran also invest a lot to expend Guangyang port for purpose of making it a regional
international container transit port and attracting more Chinese export and import
container cargoes. At present, Guangyang port has 12 berths and the project plans to
build 4 berths more until 2006. Until the year of 2011, there will be 33 berths in
port. Figure 2-2 shows the plan of Guangyang port in recent years.6 Table 2-3 shows
Guangyang port’s employing plan.
Establish 4 more berths until 2006 and have 16 berths in total
Until 2011, realize 33 berths in total and become the top 10 container port
12 berths at present
Figure 2-2 The plan of Guangyang port
Source: http://www.gfez.go.kr/chinese/03developing/sub03_02.html
Table 2-3 Guangyang port’s employing plan
3 phase
Category Whole
plan
1 phase (In
operation)
2 phase (in
operation)
1 2
Future
2.2.1.3 Kobe port
Kobe port is the most important port in Kansai, Japan. The total vessel into and out
of port is 90 thousands and ranks the number 1 in Japan.7 Since 1968 when the port is
initiated, Kobe port became a very important portal of Japan and the one of the world
famous port. Kobe port is the second largest port in Japan, the port area is shaped
like fan and the total area is about 10 sq km. The yearly throughput is a little behind
Yokohama and reached 100 million tons. In the 1950th, Kobe port begins the modern
construction of berth. Though the Hanshin-Awaji earthquake makes Kobe port suffer
seriously in 1995, people in Kobe work hard to reconstruct the berth. Only in two
years, Kobe has completed all of the equipments reconstruction. The number of
periodic line and vessels via port has recovered the level before earthquake. Now
Kobe has become the biggest trade port in Japan. At present, Kobe port is addressed
itself to readjusting port fee and facilitating ships’ entering and leaving port formality
as well as strengthening information management jobs for the purpose of becoming
21 century’s new-type core port.
The ports above have deployed serious competition in developing international
container transportation. The competition focus is on contention northeast
international container transit transportation market. Among these ports in northeast
region, Pusan port has favourable base of container transit. Plus the join in of
Guangyang port and the implementation of development planning, it is the foremost
competitors of Tianjin port. Kobe port in Japan has huge development potential
especially the processing industry’s transfer in Japan and huge foreign investments
bring large quantities of container sources for Japan. It brings beneficial condition for
Kobe port’s container development. But because of enormous container lost caused
by Hanshin-Awaji earthquake which largely weaken the international
competitiveness of Kobe port, it is quite difficult to recover. So Kobe port is the
minor important competitor.
The recent situation is that a large number of containers in Bohai rim are transited in
Pusan. It greatly affects the process of china’s construction of pivot port and makes
china’s northern costal port including Tianjin port gets into a very disadvantage
status in the competition of pivot port. So speeding up the construction of china’s
northern costal port is very important to improving the status of north ports of china.
Table 2-4 shows the competition characteristics among Tianjin port, Pusan port and
Kobe port.
Table 2-4 The competition characteristics among Tianjin port, Pusan port and Kobe
port
Ports Container
throughput
(TEU)
Port infrastructure and
development planning
Port policy Competition
relation with
Tianjin port
Tianjin port *480
(2005)
16th
largest
container
port in the
world
*Fairway depth:
-14.8~-17.2 meters
*Design handling
capability: 355 TEU
*North port container
terminal project: until
2010, 16 modern
large-scale container berths
will be built. New
adding container
throughput capability
will be 9 million TEU.
In 2011, annual
container throughput
capability will be 12
Pusan port (Including Guangyang port) *1184 (Pusan 2005) *The fifth largest container
port in the
world
*Handling capability is
616 TEU in Pusan port.
Guangyang port is 280
TEU
*In 2011 the two ports’
container throughput
capability will reach 24
million TEU
*Establishing north-east
Asia logistic net and 21
century pacific central
port
*Low freight
rate & high
quality service *Provide allowance, turnover assurance and infrastructure policy *The competition aim is distributing Japan port’s container and scramble containers from north
costal port in
china
*Foremost
competitor
Kobe port *226
(2005)
* fairway depth: -15~
-16 meters
*Establish 21 century
Asia father port
*Amend port tariff and simplify formalities *Minor important competitor
Source: Arrange on my own according to materials
2.2.2 Main domestic competitors
In the north of china, the main container ports are Dalian port, Tianjin port, Qingdao
port, Yingkou port, Yantai port, Jinzhou port, Dandong port and Longkou port.
Among these, only Dalian port, Tianjin port and Qingdao port stand a chance to
become north container pivot port. Table 2-5 shows the 3 ports’ container throughput
Tabel 2-5 The container throughput of Qingdao port, Tianjin port and Dalian port
from 2001 to 2005
Tabulation unit: 10 thousands TEU
Year 2001 2002 2003 2004 2005
Qingdao 264 341 424 514 630
Tianjin 201 241 301 381 480
Dalian 122 135 167 221 265
Qingdao 29.17% 24.34% 21.23% 22.57%
Tianjin 19.90% 24.90% 26.58% 25.98%
Dalian 10.66% 23.70% 32.34% 19.91%
Source: Arrange on my own according to materials of customers
2.2.2.1 Qingdao port
In 1997, port’s container throughput over passed Tianjin port and became the largest
container port in the north of china. In 2003, Qingdao port has completed container
throughput 4.239 million TEU and listed 3rd in china’s top 10 container ports. In the
year of 2003, Qingdao port announced that in the following 7 year, Qingdao port will
invest 16 billion Yuan to build port for the purpose of breaking through 200 million
tons in throughput in 2010 and reaching 10 million TEU in container throughput.
Compared with Tianjin port and Dalian port, Qingdao port owns comparable
favourable natural condition. Tianjin port is located in the deep level of Bohai rim.
Dalian port is located in the mouth of Bohai rim. But Qingdao port is facing wide
yellow sea and has the advantage of nearest to the world major route. Qingdao port
still has deep-water advantage that can better satisfy the calling need of 6th
generation or even bigger container ships. The container terminal 3rd phase project
in Qingdao port has the most advanced container terminal which can directly berth
super container ships with 20000 TEU. Besides, the terminal furnish the most
advanced container loading and discharging equipment and adopt modern
compared with Tianjin port and Dalian port, Qingdao port also has its disadvantage.
The hinterland is narrow and 90% of containers are coming from inner province.
Localization phenomenon is very conspicuous. Also it is too close to shanghai, and
shanghai is establishing yangshan port now which will greatly effect Qingdao port.
Besides, Qingdao port’s dominant business is overly single and port’s loading and
discharging income accounts for 80% of the overall income. Asides from that,
Qingdao port’s storage ability is low, which is even less than half of Dalian port.
Storage capability is one of the important attributions of measuring a port’s logistic
industry’s development. In recent years, in order to break limit, Qingdao port
announced the strategy of “9.6 million sq km are all Qingdao port’s hinterland” and
established office in the whole nation to attract cargoes.
2.2.2.2 Dalian port
Dalian port is located in the south of liaotung peninsula which east is Yellow sea,
west is Bohai, south is Shandong peninsula separated by Bohai strait. Dalian port is
not only the trade centre of liaoning province, but also a very important international
gateway of northeast china and inner Mongolia. Since the building of the port, Dalian
port has already formed stable system of passenger& cargoes flow and owned 73
specialized berths for container, crude oil, product oil, coal, grain, fertilizers and
mine. Dalian port is a good modern all-around port with favourable collecting and
distributing condition and service function. Besides, through Siberia railway Dalian
port became the origin point of land bridge from Asia to Europe. In recent years,
Dalian port’s container throughput kept growing. But due to the economic depression
of northeast china, low containerisation rate and the transfer of container port from
previous one to Dayaowan port, Dalian port’s container throughput’s growth is
competitively slow. It only completed 2.65 million TEU in 2005. Table 2-6 shows
Table 2-6 The comparison among Tianjin port, Qingdao port and Dalian port. Port Container throughput (10 thousands TEU)
Port infrastructure and
development planning
Port policy Comparable
advantage
Tianjin
port
480(2005)
16th largest
container port
in the world
In recent 4
years, the
annual
growth rate
is about 24%
*Fairway depth:
-14.8~-17.2 meters
*There are 15
container berths now.
The number of
container berths under
construction is 6 and
the new-adding
capability will be 4
million TEU *Construct container logistic center Rely on economic hinterland and construct china’s north container pivot port *hinterland advantage *More ocean Shipping containers *Developed collecting and distributing system Qingdao port
630(2005)
13th largest
container port
in the world
In recent 4
years, the
annual growth
rate is about
24%
*The 3-phase
terminal’s coastline
will be about 2400
meters in length and
17 meters in depth
that can call 10.000
TEU containers. The
4th terminal’s coastline
will be about 2000
meters in length that
can build 4-5 berths.
*Foreign trade
container
terminal moves
to Qianwan port
*The 3rd and 4th
phase of
Qianwan port
attract
investment at the
The total investment
will be about 5 billion.
with world-famous shipping companies and Container terminal for Tianjin port Dalian port
265 (2005)
30th largest
container port
in the world
In recent 4
years, the
annual growth
rate is about
21.7%
*Recently there are 4
container berths. *Cooperate with Singapore port authority, DCT and china shipping Group
* Bring in new
management philosophy and management mode *Region advantage *Joint venture Experience in operating container terminal *Good natural condition *Secondary competitor
Source: Arrange on my own according to materials
Chapter conclusion
From the above analysis, we know clearly Tianjin port’s own current situation, its
competitive status, major competitors and their situations. It provides foundation for
future analysis. Because of port economy scale and port economy’s stimulating role
on economy, every costal city invests largely in port construction which cause
obstacle on Tianjin port’s development. Under this situation, what Tianjin port
Chapter 3 Necessity of china’s establishing northern container pivot port
3.1 The press for establishing china’s northern container pivot port
3.1.1 Demand of Bohai rim’s economic development
From south to north development process of Chinese eastern costal economy makes
Bohai rim becomes a new round economy growth pole. Following up Pearl River
data and Yangtze River data, Bohai rim will become one of the most active regions
in china in the beginning of new country. Bohai rim is a place where economy and
culture develops and natural resource and industry base abounds. It is not only a most
powerful region in national comprehensive scientific power, but also an important
national industry base of resource and raw materials. At the same time, it is also the
region with high open degree and good developed outward type economy.
The economic development of provinces and municipalities in Bohai rim mainly rely
on or in search of port or costal cities to support. Ports and costal cities have formed
one after another economy sectors which promoting the development of regional
economy. Therefore, the development of costal cities is of great importance to the
economic development of Bohai rim.
At present there are 3 major container ports in Bohai rim, they are Dalian port,
Tianjin port, and Qingdao port. The direct hinterland of these 3 regions associated to
hinterland’s container production demands an international container pivot port in
the north of china. Once an international container pivot port like this has formed, the
increase of international transit container will realized. Circulating like this, it makes
the development of Bohai rim’s container port can keep up with the requirement of
the time. So the construction of the northern container pivot port is the economic and
social development’s objective demand of Bohai rim.
3.1.2 Construction uniqueness of china’s northern container pivot port
At present, all the Tianjin port, Qingdao port and Dalian port aims high and propose
to establish china’s northern container pivot port. But from the development history
of world container pivot port, within the same Bohai rim region, 3 ports cannot
become international container pivots at the same time. That’s because container
transportation exist timeliness and depressiveness that makes liner transportation
exist “Matthew effect”. Matthew effect refers to a phenomenon that good is going to
be better, bad is going to be worse, many are going to be more and few are going to
be less.8 That is the existing port that has already established lots of routine line will
attract more containers because of its wide line coverage, density and transportation
timeliness. More containers will lead to port’s cohesion force. So in one region that
is in the Bohai rim port cluster, there is going to be only one international container
pivot port. Of course, tripartite confrontation of 3 ports will exist for a while, but
with the 3 port’s own development in the future, there is sure going to form an
international container pivot port that is most powerful in synthesis strength and most
potential. The other 2 ports will become the feeder port servicing for this pivot port
in this region.
As a northern all-around international port, national major pivot port, Tianjin port’s
role in stimulating port hinterland’s development is becoming larger and larger with
china’s reform and opening process. Tianjin port’s development should be in
accordance with the economic development of its dependant cities and port
hinterland. Bohai rim especially the region of Beijing and Tianjin where is Tianjin
port in is the economic development focus of china’s northern region. Tianjin port’s
wide hinterland has huge development potential. According to country’s positioning
on Tianjin, Tianjin port is going to be constructed a modern port city and an
important economic center of china”. Port is a very important advantage for Tianjin.
Port city is an important feature of Tianjin. On the basis of ample research and
advantage analysis, full employing port economy and port city & sea economy’s
huge radiation role, adjusting port’s function and cargoes structure, exerting port’s
comprehensive transportation pivot role, improving port industry’s benefit,
optimizing port’s service quality, strengthening port’s cock status, exerting the
win-win condition of city development and port development, it might be possible that
Tianjin port be constructed the only container pivot port in the north of china.
But at the same time, century committee of china brings forward that establishing
Dalian port to be the northeast international shipping center. Whether it is contrary
to the strategy of Tianjin port or not? The answer is definite not. In fact, almost all of
the big ports in the world are very close to another big port. For example, Los
Angeles port and long beach port, New York port and New Jersey port in America,
Japan’s Osaka port and Kobe port, German’s Bremen port and Hamburger port and
so on. The real condition shows that establishing Dalian port to be the northeast Asia
international shipping center is not contrary to Tianjin port’s development.
3.2.1 Need for improving china’s international economy competitiveness and
northern port’s international competitive status
Port’s construction and development is not only due to the need for social and
economic development, but also driven by the city the port is in and the development
of port’s hinterland. In turn, port’s development has huge counter reaction on port
hinterland’s economy. Port’s development can stimulate hinterland’s economic
development. So container pivot port is an important section in international
economy, international trade and international shipping.
At present, there have already been many world famous container ports like Hong
Kong, Singapore, Gaoxiong, Kobe, Pusan, Tokyo and Yokohama in Asia. A very big
proportion of containers from northern part of china are transshipped in this region,
which largely increase transshipment link and transshipment fee hence losing large
amount of non-trade foreign exchange and weakening product competitiveness
internationally. If china’s 3 northern big container ports are able to correctly position
themselves according to practical situation and their own development condition, it is
not only beneficial to exerting costal port’s resource’s efficiency and rewards,
making full use of port’s own advantage, taking part in international port competition,
improving china ports’ international competitive power, but also getting over port’s
excessive unordered competition and promoting the forming of northern port’s
multi-level container transportation network—international container pivot port, feeder
transportation and domestic transportation.
3.2.2 Strategic need for realizing national development
Chinese communist party 16th conference report indicates that china’s development
complied with the situation of china and world economic development trend.
Choosing an approach like this has significant meaning for china’s realizing the goal
of overall construction of well-to-do society. Realizing new industrialization, we
must comply with Chinese situation and choose new industrialization approach that
focus on firstly developing manufacturing industry. That’s because china is in the
middle of industrialization, capacity development is unbalanced, so in the following
years, traditional industry especially the manufacturing industry still have wide
market demand. It is reported that manufacturing industry directly creates one thirds
of GDP. It takes account four fifths of the whole industry, provides more than one
thirds’ financial income for china that occupies 90% of export and arranges
occupation of more than 80 million persons. Put another way, at today when the
high-tech industry developed quickly, our country’s traditional industry takes a very
big proportion at the whole national economy and still the main power in the
economic development. Manufacturing industry especially equipment manufacture
industry is still the driven engine of the country’s industrialization and modernization.
Not owing own powerful manufacture industry, not equipping and changing the
whole industry and improving production technology level, it is impossible to realize
industrialization and modernization. At the same time, china is a big country with
nearly 1.3 billion populations and plenty of labor resource. So the employment
pressure is very serious. At the process of industrialization, especially at the process
of new industrialization of the connection of industrialization and informationization,
this contradiction even will deteriorate. So at the beginning of realizing new
industrialization, developing and absorbing manufacturing industry is very suitable
to exerting china’s labor advantage, reducing china’s occupation pressure.
Northeast china is an important heavy industry base with abundant traditional
manufacturing technology and labor force advantage. Since china’s reform and
opening, in the process of adjusting traditional industry structure, reforming
manufacture technology and upgrading products, northeast’s traditional heavy
strategic decision on china’s new manufacture industry road create new development
chance for stimulating north-east economy and restoring northeast industry base
based on manufacture industry. As the sea gate of northeast manufacture industry
base, northern container pivot port’s construction has more urgent demand.
3.2.3 Need for promoting north region’s social and economic development and
opening
Bohai rim region is located in the connection parts of south to north transit and east
to west transit. Its hinterland is the important window access to northeast Asia and
the world. Because of the fact of Geo-economy, the economic hinterland of ports in
Bohai rim has strong complementation with some regions and countries in east-north
Asia in natural resource and economic resource. Table 3-1 shows national resources’
complementation between regions in northeast Asia including china.
Table 3-1 The complementation between regions & countries in northeast Asia in
natural resource and economic resource aspect9
China Russia North Korea South
Korea
Japan
Capital -44.6 -50.3 -42.11 -13.0 +57.7
Mine +42.3 +35.9 +28.6 * -41.4
Agriculture +35.5 -13 +17.6 -38.4 -10.8
Energy
sources
+34.6 +73.3 * * -76.4
Forestry +13 +50.8 +10.3 -84 -24.9
Natural
resource
Marine
product
* +22.2 +44.1 -15.8 -13
Labor force +44.9 -26.1 +32.7 -21.3 -22.9
Operation management -28.4 -26.1 -21.1 * +37.8
Technology -63.4 -55.8 -56.1 +27.7 +74.6
Productive materials -23.8 -22.9 -23.8 -14.9 +15.8
Consumption goods -14.6 -19.2 -13.7 +33.6 +15.8
Annotate: + Potential supply –Potential demand *almost balanced
Source: provide by professor Zong beihua
From the table we know that china has advantage in natural resource’s supply, hence
having strong complementation with Japan and Korean. At agriculture aspect, china
has comparative big complementation with Russia. In the aspect of operation
management, technology, productive materials and consumption goods, china is in
the minority position hence having comparative good complementation with Japan.
This kind of objective existing complementation stimulates economic cooperation
between countries and it also has some reference to Bohai rim’s international
economic cooperation.
Bohai rim with the center of Beijing and Tianjin are close to Japan and Korean who
are the most developed countries in northeast Asia. The location advantage plus the
natural resource and economic resource’s complementation make these 2 regions
will cooperate closely. So with the increasing deepening of international industry
transfer, there will be large quantities of capital and technique intensive industries
transferring to Bohai rim. So in the following years, capital-intensive industries in
Bohai rim will get ample development. With the economic rising in south of china,
how to develop northern economy, how to change economic development’s
unbalanced phenomena will become a realistic problem for china’s stable and
gradual development in economy. China’s economic growth focus’s from south to
north gradient transfer is a necessary trend for china’s transform and opening and
economy development. Cities in Bohai rim usually have comparable good
comprehensive technology and employees. At the same time, Bohai rim is one of the
densest economic regions among urban agglomeration, industry clusters and port
clusters in my country or even in the world. In consequence, speeding up the
construction of north container pivot port is the need for promoting economic and
social development of southern region of china.
3.2.4 Requirement for china port industry’s configuration
From the point of the world economic development trend, the world’s economic
growth focus has transferred to Asia-pacific region. Within the region of Asia-pacific,
northeast Asia is becoming more and more worldly famous by right of its favorable
location, abundant resource condition, multi-level economic structure and huge
development potential. In recent years, the economic cooperation between regions in
northeast Asia is increasingly actively. Bohai rim region is located in the center of
northeast Asia, and it takes a very important role in international diversion of labor
so it has the potential advantage of becoming northeast Asia’s economy center.
Since 1980s, some comparable developed countries like Japan and Korean in this
region has carried through industry restructure. This kind of restructure brings lots of
opportunities to Bohai rim regions. Objectively, it requires speeding up north
container pivot port’s constructer to promote china’s taking part in the process of
Chapter 4 Qualification analysis of establishing Tianjin port as an international
container pivot port
4.1 Strengths analysis of Tianjin port around northeast Asia and Bohai rim
4.1.1 Tianjin port is an all-around international trade port, major container port and
energy port in north china
Tianjin port is located in the connection point of Beijing & Tianjin and Bohai rime
economy circle cluster and it is the nearest port in Bohai rim port cluster to north
china and northwest china. This makes Tianjin port owns wide economic hinterland.
Besides, Tianjin port is convenient to every port in the north of china and northeast
Asia as well as ports in Pacific region. It takes a very important status in international
and internal trade.
4.1.2 Tianjin port has been paid great attention by government at all times
government. Tianjin port has become the window and channel of going to world
since Tianjin’s reform and opening up. Bonded area of Tianjin port that is
established in 1991 has poured vigor in attracting foreign investment and in
strengthening function sides. As the advance area of reform and opening, Tianjin
port has already become the accumulation area for attracting foreign and domestic
capital. It has realized 5 billion US dollars of accumulated agreement foreign
investment and 2 billion US dollars of actual amount of foreign funds utilized. Until
recently, there have been more than 4000 enterprises initiated by 97 countries and
regions, 27 provinces, municipalities and district and 47 big companies set up a home
in bonded area of Tianjin port. Among these there are 33 companies that are in the
world’s top 500 ranking.10 At present, Tianjin binhai new district with the kernel of
one port (Tianjin port) and 2 zones (economic technological development zone,
bonded area) has been the most economic growth point in Tianjin. Until the year of
2005, Tianjin binhai new district has realized GDP of 160.86 billion Yuan that
accounted for 43.9% of that of Tianjin11. In the year of 2005, Tianjin binhai new
district’s gross industrial output value and the industry value added over passed
shanghai pudong new district. Overall export volume has increased to 18.47 billion
US dollars in 2005 from 0.5 billion US dollars in 1993 and it occupies 65% of
Tianjin port. Omnibearing opening up pattern has almost formed. Tianjin binhai new
district’s development greatly stimulates Tianjin port’s development just like
shanghai pudong new district’s stimulation on shanghai port. Looking at the future,
Tianjin port will go to the world more openly. At the aspect of making use of
international resource, capital and taking part in international competition, Tianjin
port which acts as an import and export gateway will take more and more important
role.
10
http://gov.finance.sina.com.cn/zsyz/2006-03-23/82045.html
4.1.3 Tianjin port owns favorable port condition
Port condition owned by Tianjin port is an important foundation of developing
regional association, is the pre-condition of Tianjin port becoming economy center
and transportation pivot connecting north-west, north china and north-east Asia.
Since china’s reform and opening, Beijing needs a convenient foreign gate. In Bohai
rim, Tianjin is the best choice. But the cooperation between these two cities once got
into deadlock. Beijing cooperated with Tangshan and established Jingtang port in
1993. But Jingtang port began its first step too late and it is distant to Beijing. So it
can’t solve the problem of Beijing. It is quite likely that Tianjin port take more roles
in the cooperation of Beijing and Tianjin.
At present, Tianjin port has already stepped into the range of world’s top 10. It has
business contract with more than 300 ports in more than 160 countries and regions
and established friendly relations with 10 ports. In Tianjin port, the majority of
containers are coming from Beijing, Hebei, Shanxi, Shanxi, Ningxia, Gansu, Qinghai
and Xinjiang. Even Chongqing in the Yangtze valley views Tianjin as gateway of
exporting to Japan and Korean.
4.1.4 Construction of infrastructure developed quickly in Tianjin port
In 2005, Tianjin port completed infrastructure investment 4.9 billion Yuan and listed
in the front line among national ports. This year, Tianjin port will go on enlarging
infrastructure investment according to the demand of establishing Tianjin to be a
first-class port in the world. It is estimated that the infrastructure investment will
reach to 7 billion Yuan this year12. This year is the first year of 11th five-year plan.
Tianjin port will further accelerate construction and multiple major projects will
complete. Among these, container terminal section A in north port of Tianjin is going
to be 1100 meters and can berth 100.000 DWT ships and design annual throughput
capability is 1.7 million TEU. Nanjiang 12 # break bulk cargoes berth is 200
thousands berth and the design annual throughput capability is 10 million tons. It will
be completed at the end of September. 150.000 DWT coal terminal will be
completed in December. The design annual throughput capability is 35 million tons.
Besides that, In order to speed up port construction, this year, some other major
projects like north port container terminal section B project, 3rd phase of container
terminal in north port and 300.000 DWT oil terminal will come into operation.
During the 11th five-year plan, for the purpose of building into modern international
deep-water port, Tianjin port will invest 36.7 billion Yuan to construct port so as to
further enlarge scale, improve class, perfect function and improve Tianjin port’s core
competitive power.
4.2 The weakness analysis of Tianjin port around northeast Asia and Bohai rim
4.2.1 Circumjacent port’s large scale and specialization tendency is increasingly
apparent
For adjusting to the developing trend of international shipping, all of the major ports
in Bohai rim are accelerating construction of bigger and special ports. 300.000 DWT
oil terminal and 300.000 DWT mine terminal, which totally cost nearly 2.1 billion
Yuan in Dalian, put in operation at September of 2004. In Qingdao port, container
develops every quickly in recent year. The depth of water reached -17.5 meters and it
4.2.2 Transportation network needs further construction
The construction of transportation network is very important to port’s development.
But because of lacking special railway transit equipments at present, the terminal
capability from port area to railway is very limited. Asides from that, the problems of
railway itself and equipments deficiency lead to that railway container
transportation’s advantage cannot exert. Undeveloped and unsystematic multimodal
transportation to the great extent constrain Tianjin port logistic industry’s
development. So according to the characteristics of locating in the west of Bohai rim
where is close to north china, vast hinterland of north-east of china, Tianjin port
should on the one hand strengthen the access construction of highway especially
speeding up the research on express highway direct into the port if the transportation
range is within 500km, on the other hand should accelerate the access construction
between port and railway of hinterland if the transportation range exceed 500km.
4.2.3 The berth needs further construction
Presently, national and world container transportation volume increases very quickly.
Taking Tianjin port as an example, in recent 5 years, the growth rate of Tianjin port’s
container throughput is about 23.4%. With the quick growth of Beijing and Tianjin,
china’s entering into WTO and the implementation of western development strategy;
container throughput has achieved radical progress. At the same time, driven by
economic of scale, all the major shipping companies in the world are building or
ordering ships larger than 5000 TEU. Post-panamax ships are becoming the most
popular type of ships in Asia-Europe and Asia-West America route. Large ships
increase more quickly than small ships. Table 4-1 shows the ship ordering condition
in recent years and Table 4-2 shows the evolution of the ship’s size. From the Table,
like 5th and 6th generation or above are becoming more popular. Ships’ DWT has
reached 50.000 DWT—60.000 DWT above, the draft reaches 13—15 meters. 8000
TEU container ship is no longer rare any more. 120.000 TEU container ship is under
construction. But at the present time, there are only 15 container special berths in
Tianjin port; the annual throughput capability only has 4 million TEU. Considering
the gradual growth of container throughput and the longer cycle time of container
terminal construction, throughput capability deficiency will exist for a long time in
Tianjin port.
Table 4-1 World container ship fleet (until April 1st, 2005)
Ship number TEU Now Book in 2005 Book in 2006 Book in 2007 Book in 2008 Book in 2009 Total
000-499 411 0 0 0 0 0 0
500-999 619 76 67 10 2 0 155
1000-1999
938 52 54 55 15 0 176
2000-2999
548 45 60 42 10 2 159
3000-3999
278 6 17 34 7 0 64
4000-4999
254 29 39 53 28 1 150
5000-5999
190 32 22 24 12 0 90
Above
6000
138 38 77 74 53 4 246
TOTAL 3376 278 336 292 127 7 1040
Source: International Containerization (2005), Key figures of supply and demand in container
Table 4-2 Evolution of the ship’s size
Tabulation unit: meter
TEU LOA Width Draught
1500 225 24.5 9
3000 275 27.5 10
4500 300 32.2 11.5
6600 320 40.0 14.3
8000 347 42.6(17 row) 14.5
12000 380-400 22 row 15.5
15000-18000 Above 400 24 row 18
Source: Arrange on my own according to materials
4.2.4 Unsoundness of port logistic operation management mode
Presently, Tianjin port’s area is lack of large-scale operators with strong organizing
and coordinating capability. Aside from COSCO, Sinotrans and CMST (China
National Materials Storage and Transportation Corporation) have developed modern
logistic operation, most of warehousing enterprises’ scale is small and the function is
single. They are in the scattered arrangement and dispersed condition and lacking the
function of systematic logistic service. This largely hinder the seamless services.
4.2.5 Unsoundness of information management
Presently, Tianjian port hasn’t established wide information service system. Though
port EDI has been established, it still has distance with social requirement for
developing shipping transaction, goods transaction, information distribution,